US STOCKS-Wall St ends whipsaw week higher as Fed comments soothe market

By Stephen Culp

NEW YORK, April 11 (Reuters) - Wall Street posted solid gains Friday as big banks kicked off first-quarter earnings season and investors closed the book on a turbulent week of wild swings driven by the chaos of U.S. President Donald Trump's hydra-headed trade war.

All three major U.S. indexes ended the session sharply higher after assurances from Boston Federal Reserve President Susan Collins that the Fed is prepared to keep financial markets functioning should the need arise.

All three indexes posted gains from last Friday's close. Stocks were whipsawed all week by tariffs, then a reprieve on European goods and a tit-for-tat escalation in the U.S.-China trade war.

"Investors are in the midst of this tug of war looking for some positive signs that the uncertainty that's really been plaguing the market will subside," said Greg Bassuk, Chief Executive Officer at AXS Investments in New York.

"Uncertainty and volatility is the new investor narrative," Bassuk added. "The table is set for more volatility ahead and this week's roller coaster ride could be just foreshadowing for what's ahead."

Beijing retaliated to Trump's recent hike of tariffs to an effective rate of 145%. The trade war has caused wild intraday market swings and driven consumers' near-term inflation expectations to their hottest level since 1981.

First-quarter reporting period got off to a solid start. JPMorgan Chase JPM.N, Morgan Stanley MS.N and Wells Fargo WFC.N all reported better-than-expected profits, but warnings of a potential economic slowdown due to trade disputes dampened enthusiasm for the sector.

Analysts currently expect aggregate S&P 500 earnings growth of 8.0% for the first three months of the year, less optimistic than the 12.2% growth predicted at the beginning of the quarter, according to LSEG data.

Economic data offered further evidence that inflation continues to cool, with the Labor Department's Producer Prices index unexpectedly falling by 0.4% last month.

In a separate report, however, consumer sentiment soured further. One-year inflation expectations shot up to 6.7%, the highest level since 1981.

In addition to Collins' reassurances, New York Federal Reserve President John Williams said the U.S. economy is not entering a period of high inflation and low growth, and the U.S. Federal Reserve will act to keep so-called "stagflation" at bay.

All 11 major sectors in the S&P 500 were last in positive territory, with materials .SPLRCM and technology .SPLRCT enjoying the largest percentage gains.

According to preliminary data, the S&P 500 .SPX gained 91.35 points, or 1.73%, to end at 5,359.40 points, while the Nasdaq Composite .IXIC gained 323.22 points, or 1.97%, to 16,710.54. The Dow Jones Industrial Average .DJI rose 607.62 points, or 1.53%, to 40,201.28.